How to Help Employees Save, Despite Inflation
by Caroline Boyland May 9, 2022
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One of the leading challenges facing employers and employees across the nation is the rising cost of living due to record-high inflation rates. Financial wellbeing has a direct impact on employee mental health, which has a direct impact on morale and productivity at work—so businesses are starting to ask themselves, is it possible for us to help employees save money, despite inflation challenges?
New research says: Yes.
Getting Costs Under Control
Although employers can’t control many unfortunate inflation-driven cost increases (think: gas, groceries), there is one key category where employers can make a significant impact: healthcare.
Healthcare is a major money-eater for employees and their families nationwide. Our latest research asked employees what costs they were feeling the most increases in, and healthcare came in 4th— just behind groceries, gas, and utilities. With healthcare costs spiking, employers can restrategize their approach to benefits to develop innovative methods to help their employees save on these healthcare related costs.
Here are some of the benefits strategies employers can adopt to help their employees save more for the better of their business and the employees.
Assistance on Health Essentials
As evidenced by our top 3 cost-increase categories (groceries, gas, and utilities), basic health needs consume a significant share of employee salaries. Easing expenses on needs such as food and wellness can help employees save on costly necessities.
For example, we’ve seen businesses introducing perks like grocery stipends, gym reimbursements, free mental health programs, and others, to help ease the burden of these expensive needs.
Focus on Financial Health
Our research found that 59% of employees did not reach their savings goals in 2021. Tack onto that rising inflation across the board, and employees are struggling once again in 2022.
Taking care of your employees' financial wellness is vital in helping them save more and boosts their productivity and satisfaction at work. Financial wellness programs can address key pain points in your employees' financial plans and help them make better financial decisions.
Financial wellness programs could look like:
- Offering consultative financial advice- Providing 1 to 1 financial consultation services to your employees can go a long way in solving their money management and planning challenges. The consultation may be virtual or face-to-face, depending on the preferences and the mode your employees are more comfortable with.
- Implementing personalized benefit decision support- An intelligent, AI-driven decision support tool can assess employees’ health and financial profile, and suggest the best possible benefits plans for their unique health and financial needs. This can help employees choose the right plans to save on healthcare costs year-round.
- Developing an Investment Program- With employees saving less and less each year, employers have a significant opportunity to help their employees save more by developing avenues for investment. Investments come in all shapes and sizes, from stocks and bonds to mutual funds and exchange-traded funds (ETFs). You'll want your offerings to reflect your company's culture—for example, if you're a young, fast-growing startup, you could place your focus on tech stocks.
365 Days of Benefits
Benefits don’t start and end at open enrollment, what really impacts costs is how employees use their benefits year-round. A tool like Nayya can provide a consistent hub for employees to find in-network care, manage claims, find inexpensive prescriptions, and track spending progress on their deductible. This gives employees access to their benefits every day of the year, so that they can save on health costs when they need it most.
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